Fight Club

In the basement of the inn in Flotsam, you can access the One on One: Flotsam side quest by interrupting some boxers having a brawl. Then you can beat a few of them and you will be approached by Ziggy. He offers you a chance to keep fighting, but for better rewards.

(LEFT) 'Find King Ziggy outside of the tavern at night.' (RIGHT) 'Laredo makes it clear that there will be trouble if you refuse to throw the fight.'

Head outside the inn at night and you'll find King Ziggy (as he identifies himself) standing to the side of the door. Talk to him and agree to fight for him. He'll slowly walk you across town to the mansion grounds that belong to Laredo. Guard will ask you to leave your weapons outside when you arrive. Saying no to this will result in having to talk to Ziggy again.

When you arrive, Laredo will be there to greet you. He is intrigued by your willingness to enter the tournament. Then the tournament begins. You can fight numerous rounds against each opponent. There are a total of four opponents. To fight them, you simply must beat quick-time events like those you've already cleared earlier in the game. You should be quite good at them by now, so hopefully the fights won't give you any real difficulty.

Once there's only one opponent left, Laredo will draw you to the side and ask you to throw the fight. He'll promise you a portion of the winnings, but that's not a sincere promise. You can either be the sucker and throw the fight, or you can refuse. Assuming that you go with the latter choice, winning the fight will lead to you being escorted out of the mansion with your winnings. When you appear between the two soldiers, look to the chest against the wall to find your gear. Equip it all again, then start back through town toward the inn. Along the way, assuming that you disappointed Laredo by refusing to throw the fight, Laredo's hired goons will try to kill you for betraying their leader. Defeat them and resume your adventure. The side quest is complete.

The reward for throwing the fight is 400 Orens; the award for winning the fights is a little less (about 300 Orens) but you will also earn 100 Experience Points for sticking it to Laredo.